AUD/USD continues to tread water below 0.77, remains in weekly range
- AUD/USD struggles to find direction since Monday.
- DXY fails to stay above 93.
- US House approves tax bill, sends it to Trump.
Since the start of the week, the AUD/USD pair is having a difficult time setting its next short-term direction as it trades in a very tight 40-pip range. As of writing, the pair was at 0.7672, up only 10 pips, or 0.13%, on the day.
After spending the majority of the day moving sideways a little above the 93 mark, the US Dollar Index came under a renewed pressure in the early NA session. Although there were no clear catalysts behind that drop, market chatter about US President Donald Trump delaying the signing of the tax bill until January seems to have weighed on the greenback. Nevertheless, the Republican-controlled U.S. House approved the tax legislation in a final vote today and now it's up to Trump to legalize the bill.
In the meantime, the 10-year US T-bond yield continues to edge higher for the third straight day and was up 1% at the time of writing. The DXY, however, is still down 0.2% on the day at 92.85. The low trading volume could be the primary reason why the index is struggling to make a decisive recovery in the session.
Technical levels to consider
The first technical resistance for the pair could be seen at 0.7715 (200-DMA) ahead of 0.7770 (100-DMA) and 0.7835 (Oct. 23 high). On the downside, supports align at 0.7625 (50-DMA), 0.7585 (20-DMA) and 0.7500 (psychological level). The RSI indicator on the daily chart is edging higher above the 50 mark, suggesting that the bulls are gaining strength.